Banking

What is Simple Interest? Simple interest is calculated based on a loan’s principal or the initial deposit into a savings account. Simple interest doesn’t compound, therefore a creditor will only …

What is Cash? Money other than checks or cash equivalents, such securities, commercial paper, government bonds, etc. A physical form of currency approved by the government for use in the exchange of goods or services, such as coins cash bills. In business, it …

What is Accounting Profit? Accounting profit is defined as the total earnings of a business after deductions of explicit costs. Explicit costs are expenses that directly affect the profitability of …

What is a Merchant Bank? A merchant bank is a financial institution that offers banking services and consultancy for corporations and high-value clients. Merchant banks offer loan services, financial advice, …

When it comes to managing my finances, understanding the differences between charge cards and credit cards is crucial. With a charge card, I know that I must pay off the …

When it comes to choosing between a credit card and a debit card, there are a few key differences to consider. With a credit card, I can make purchases on …

A Letter of Credit (LC) is like a financial safety net in the business world. It’s a promise from a bank that if you can’t pay, they’ve got your back. …

Commercial banks and merchant banks play distinct roles in the financial landscape. Commercial banks, seen as the financial backbone of everyday life, cater to the general public by offering services …

The Bank Rate and the Marginal Standing Facility (MSF) Rate are like two siblings in the vast financial landscape, each with its unique role in the central banking family. Think …

Unit banking involves a system where a single, independent bank operates without any branches, catering to its local community. This model promotes a close connection between the bank and its …